Federal Communications Commission da 16-673 Before the Federal Communications Commission



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Conclusion


  1. The Applicants bear the burden of demonstrating that the potential public interest benefits of the proposed transaction outweigh the potential public interest harms. We have reviewed the Applicants’ initial public interest statement, as well as their responses to our requests for additional information, and we conclude Applicants have shown that granting the transfer of control applications serves the public interest. Based on our careful review of the record, we find that the proposed transaction is likely to result in some public interest benefits, including the likely improvement of local network facilities and broadband services in the USVI, and we find that the transaction is unlikely to result in any significant public interest harms. Accordingly, we grant the proposed transfer of control applications.



  1. ORDERING CLAUSES


  1. Accordingly, having reviewed the applications and the record in this matter, IT IS ORDERED that, pursuant to sections 4(i)-(j), 5(c), 214, 303(r), 309, and 310(d) of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i)-(j), 155(c), 214, 303(r), 309, 310(d), and sections 0.51, 0.61, 0.91, 0.131, 0.261, 0.283, 0.291, and 0.331 of the Commission’s Rules, 47 CFR §§ 0.51, 0.61, 0.91, 0.131, 0.261, 0.283, 0.291, and 0.331, the applications to transfer control from CFC to ATN of domestic and international section 214 authorizations, wireless licenses, and cable television relay service station licenses held by the Innovative Companies, and listed in Appendix A, ARE GRANTED.

  2. IT IS FURTHER ORDERED, pursuant to section 1.102(b)(1) of the Commission’s rules, 47 CFR § 1.102(b)(1), that this Memorandum Opinion and Order IS EFFECTIVE upon release. Petitions for reconsideration under section 1.106 of the Commission’s Rules, 47 CFR § 1.106, or applications for review under section 1.115 of the Commission’s rules, 47 CFR § 1.115, may be filed within thirty days of the date of public notice, i.e., within thirty days of the release date of this Memorandum Opinion and Order.

FEDERAL COMMUNICATIONS COMMISSION

Matthew S. DelNero

Chief, Wireline Competition Bureau


Mindel De La Torre

Chief, International Bureau

William T. Lake

Chief, Media Bureau
Jon Wilkins

Chief, Wireless Telecommunications Bureau



APPENDIX A
SECTION 214 AUTHORIZATIONS

    1. International


The applications for consent to the transfer of control of certain international section 214 authorizations are granted.


File Number

Authorization Holder

Authorization Number


ITC-T/C-20151030-00254
ITC-T/C-20151030-00255

DTR Holdings LLC
Vitelcom Cellular, Inc. d/b/a Innovative Wireless

ITC-214-19990330-00206
ITC-214-19930312-00048

ITC-214-19990330-00207




B. Domestic
The application for approval to transfer control of domestic section 214 authority held by Innovative Long Distance, Inc. and Virgin Islands Telephone Corporation is granted.










SECTION 310(d) APPLICATIONS
The applications for consent to the assignment of licenses under section 310(d) of the Act are granted.



  1. Wireless Authorizations

File Number
0007004175

Licensee
Virgin Islands Telephone Corporation

Lead Call Sign
KNKI943

0007004176



Vitelcom Cellular, Inc.




KNKN845










PART 78 -- CABLE TELEVISION RELAY SERVICES (CARS)


File Number


Licensee


Lead Call Sign


20151110AB-09

Innovative Cable TV St. Thomas

WHZ-442

20151110AC-09

Innovative Cable TV St. Thomas

WLY-863

20151110AD-09

Innovative Cable TV St. Thomas

WLY-864

20151110AE-09

Innovative Cable TV St. Thomas

WLY-865

20151110AF-09

Innovative Cable TV St. Thomas

WLY-866

20151110AG-09

ICC TV, Inc.

WLY-875

20151110AH-09

ICC TV, Inc.

WLY-876

The Applicants also seek consent to transfer control of antenna structure registration 1018421 held by Caribbean Communications Corporation, File No. A0022081, which is granted.





1 47 U.S.C §§ 214, 310(d). See National Rural Utilities Cooperative Finance Corporation and Atlantic Tele-Network, Inc. Consolidated Application for Consent to Transfer Control of Domestic and International Section 214 Authority, WC Docket No. 15-264 (filed Oct. 30, 2015) (Lead Application). In response to a request from the Commission, CFC and ATN filed additional information regarding Vitelco’s broadband offerings, its hybrid fiber-coaxial (HFC) network, and the financing of that network. See Letter from Phil Marchesiello, Counsel to ATN, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 15-264 (filed Mar. 10, 2016) (March 10 Supplement).

2 The Innovative Companies include two additional companies, neither of which holds a Commission license or authorization: St. Croix Cable TV, Inc. d/b/a/ Innovative Cable TV St. Croix (Innovative Cable STX) and VI PowerNet LLC (VI PowerNet). See Lead Application, Attach. 1, Description of the Proposed Transaction, Public Interest Statement, and Related Requests and Showings, at 2 (Public Interest Statement).

3 The USVI consists of three main islands (St. Thomas, St. Croix, and St. John) as well as other minor islands.

4 Applications Filed for the Transfer of Control of the Innovative Companies to Atlantic Tele-Network, Inc., Public Notice, 30 FCC Rcd 13328 (WCB, IB, MB, WTB 2015) (ATN Public Notice).

5 See supra note 1.

6 Public Interest Statement at 9-10.

7 Id. at 10.

8 Id. at 9-10.

9 Id. at 10.

10 Id. at 2.

11 Lead Application at 5-6.

12 Public Interest Statement at 4. CFC was incorporated under the District of Columbia Cooperative Association Act in April 1969 and is headquartered in Dulles, Virginia. Id.

13 Id. at 4.

14 Id. at 4.

15 Id. at i.

16 Id. at 5-6. CAH also is the holding company for CFC’s communications businesses in the British Virgin Islands and St. Maarten. Id.

17 Id. at 6. DTR holds international section 214 authority issued by the Commission. Id.

18 Id. at 6. Research and Technology Park Protected Cell Corporation (RTPark PCC) owns or holds the rights to 0.5 percent of the shares of Innovative Cable STT-STJ, Innovative Cable STX, TV2, VCI, and VI PowerNet. RTPark PCC provides services and benefits to tenants of the University of the Virgin Islands Research and Technology Park, a research and technology park chartered by the USVI to promote economic development and technology industries in the USVI. Id. at 5 n.5. DTR holds the remainder of the stock in each of the Innovative Companies (other than DTR itself).

19 Id. at 2.

20 Id. at 6.

21 Id. at 6.

22 See Appx. A.

23 Public Interest Statement at 7.

24 Id. at 7.

25 See Appx. A.

26 Public Interest Statement at 8.

27 See Appx. A.

28 Public Interest Statement at 8.

29 See Appx. A.

30 Public Interest Statement at 8-9.

31 See Appx. A.

32 Public Interest Statement at 9.

33 Id. at 7.

34 Id. at 8.

35 Id.

36 Id. at 6-8.

37 Id. at 12.

38 Id.

39 Id. Applicants state that they have received consents for the proposed transaction from the regulatory authorities in the British Virgin Islands and St. Maarten. Letter from Phil Marchesiello, Counsel to ATN, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 15-264, at 1-2 (filed May 11, 2016). Applicants further state that the review by the USVI Public Service Commission is pending. Id. at 2 (citing Consolidated Application for Transfer of Control of Innovative Telephone, Innovative Cable TV St. Thomas-St. John and Innovative Cable TV St. Croix, PSC Docket No. 653 (Virgin Islands Pub. Svc. Comm’n. 2015). On February 2, 2016, the U.S. Department of Justice (DOJ) granted early termination of its pre-merger review of this transaction under the Hart-Scott-Rodino Antitrust Improvement Act of 1975. Federal Trade Commission, Early Termination Notices, File No. 20160407: Atlantic Tele-Network, Inc.; National Rural Utilities Cooperative Finance Corporation (Feb. 2, 2016), https://www.ftc.gov/enforcement/premerger-notification-program/early-termination-notices?combine=national+rural&field_date_value%5bvalue%5d%5bdate%5d=&date_filter%5bmin%5d%5bdate%5d=January+5%2C+2016&date_filter%5bmax%5d%5bdate. Our review of the applications filed with the Commission does not affect other independent governmental reviews of the proposed transaction, nor do we intend for any finding in this Memorandum Opinion and Order to pre-judge other independent governmental consideration of matters under applicable law or precedent, which may differ from our standard of review.

40 47 U.S.C. §§ 214(a), 310(d).

41 See Applications of AT&T Inc. and DIRECTV for Consent To Assign or Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 30 FCC Rcd 9131, 9139-40, para. 18 (2015) (AT&T/DIRECTV Order); Applications filed by Qwest Communications International Inc. and CenturyTel, Inc. d/b/a CenturyLink for Consent To Transfer Control, Memorandum Opinion and Order, 26 FCC Rcd 4194, 4199, para. 7 (2011).

42 See AT&T/DIRECTV Order, 30 FCC Rcd at 9140, para. 18 (and cases cited therein).

43 See id.

44 See id.

45 See id. at 9140, para. 19.

46 See id.

47 See id.

48 See id. at 9140, para. 20 (and cases cited therein).

49 See, e.g., id.

50 See id. at 9140-41, para. 20.

51 15 U.S.C. § 18; see also AT&T/DIRECTV Order, 30 FCC Rcd at 9141, para. 21 (and cases cited therein).

52 See AT&T/DIRECTV Order, 30 FCC Rcd at 9141, para. 21 (and cases cited therein).

53 See id.

54 See id. at 9142, para. 24.

55 See, e.g., Sprint Nextel Corporation and Clearwire Corporation Applications for Consent To Transfer Control of Licenses, Leases, and Authorizations, Memorandum Opinion and Order, 23 FCC Rcd 17570, 17582, para. 23 (2008) (Sprint Nextel/Clearwire Order); Applications of Cellco Partnership d/b/a Verizon Wireless and Atlantis Holdings LLC for Consent To Transfer Control of Licenses, Authorizations, and Spectrum Manager and De Facto Transfer Leasing Arrangements, Memorandum Opinion and Order and Declaratory Ruling, 23 FCC Rcd 17444, 17465, para. 33 (2008) (Verizon Wireless/ALLTEL Order).

56 See, e.g., Sprint Nextel/Clearwire Order, 23 FCC Rcd at 17582, para. 23; Verizon Wireless/ALLTEL Order, 23 FCC Rcd at 17465, para. 33.

57 47 U.S.C. § 310(d).

58 47 U.S.C. § 308(b) (“All applications for station licenses, or modifications or renewals thereof, shall set forth such facts as the Commission by regulation may prescribe as to the citizenship, character, and financial, technical, and other qualifications of the applicant to operate the station . . .”); see also AT&T Inc. and BellSouth Corporation Application for Transfer of Control, Memorandum Opinion and Order, 22 FCC Rcd 5662, 5756, para. 190 (2007) (AT&T/BellSouth Order).

59 Public Interest Statement at ii-iii.

60 Id. at ii.

61 Post-closing, ATN (through its ownership and control of Vitelco) will be subject to the specific federal high-cost universal service obligations that the Commission will adopt in the Connect America Fund (CAF) proceeding. In the December 2014 Connect America Order, the Commission concluded that it would adopt tailored service obligations for each of the non-contiguous carriers like Vitelco that elected to continue to receive frozen support amounts for CAF Phase II in lieu of the offer of model-based support. See Letter from Russell M. Blau, Counsel to Virgin Islands Telephone Corporation d/b/a Innovative Communications, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 10-90 (filed Dec. 29, 2014); Connect America Fund, Report and Order, 29 FCC Rcd 15644, 15661-63, paras. 45-49 (2014) (December 2014 Connect America Order).

62 See, e.g., Applications of AT&T Inc., E.N.M.R. Telephone Cooperative, Plateau Telecommunications, Inc., New Mexico RSA 4 East Limited Partnership, and Texas RSA 3 Limited Partnership for Consent To Assign Licenses and Authorizations, Memorandum Opinion and Order, 30 FCC Rcd 5107, 5115, para. 18 (2015) (AT&T-Plateau Wireless Order); see also Applications of AT&T Inc. and Centennial Communications Corp. For Consent to Transfer Control of Licenses, Authorizations, and Spectrum Leasing Arrangements, Memorandum Opinion and Order, 24 FCC Rcd 13915, 13932 para. 37 (2009) (AT&T-Centennial Order).

63 Public Interest Statement at 34 (citing Policies Regarding Mobile Spectrum Holdings; Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, Report and Order, 29 FCC Rcd 6133, 6222, para. 227 (2014), recon. denied, Order on Reconsideration, 30 FCC Rcd 8635 (2015) (Mobile Spectrum Holdings Order)).

64 See AT&T-Centennial Order, 24 FCC Rcd at 13934 para. 42 (holding that “for Puerto Rico and the U.S. Virgin Islands, we find that the relevant geographic markets are not CMAs or CEAs. Instead, we find that Puerto Rico and the U.S. Virgin Islands are each a separate relevant geographic market.” (citation omitted)).

65 See, e.g., AT&T-Plateau Wireless Order, 30 FCC Rcd at 5114, para. 16; Applications of Cricket License Company, LLC, et. al., Leap Wireless International, Inc., and AT&T Inc. for Consent To Transfer Control of Authorizations, Memorandum Opinion and Order, 29 FCC Rcd 2735, 2745‑46, para. 21 (WTB, IB 2014) (AT&T-Leap Order).

66 See Applications of Comcast Corporation, General Electric Company, and NBC Universal, Inc. for Consent to Assign Licenses and Transfer Control of Licensees, Memorandum Opinion and Order, 26 FCC Rcd 4238, 4250, para. 27 (2011); Applications for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor, to Sirius Satellite Radio Inc., Transferee, Memorandum Opinion and Order and Report and Order, 23 FCC Rcd 12348, 12367, para. 36 (2008).

67 Public Interest Statement at 27.

68 Public Interest Statement at 31.

69 Public Interest Statement at 30.

70 Id. Applicants state that 99.9 percent of the households in the USVI will be able to receive service over Vitelco’s completed HFC network, and Vitelco is in the process of connecting individual households and businesses to the HFC network backbone as part of its ongoing migration. Vitelco expects to complete this process for residential customers in 2016. March 10 Supplement at 6.

71 See Applications of Charter Communications, Inc., Time Warner Cable, Inc., and Advance/Newhouse Partnership for Consent to Assign or Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, FCC 16-59, at n.154 (fixed wireless service “currently faces limitations on data usage, speeds, higher prices and availability.”).

72 Public Interest Statement at 33.

73 Id. at 25.

74 Id. at 39.

75 Id. at 24.

76 Id. at 24. Applicants also claim that a number of mobile virtual network operators (MVNOs) using Sprint’s network serve wireless subscribers in the USVI (e.g., Boost Mobile, Tracfone, and Virgin Mobile). Id. at 24-25.

77 Id. at 24-25.

78


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